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Answers (6)
- tiger3599
- Contributions:50
It's a conventional as just refinanancing my first mortgage
- Key Lock Lending
- Contributions:100
I was asking whether this transaction is a cashout (proceeds to you above and beyond paying off existing mortgage) vs Rate & Term (no cash proceeds to you just enough money to cover closing costs, escrows and covering existing loan balance.
The reason i asked is that there are additional loan level price adjustments for cashout refinances.
If you're not getting cashout than you should do better than 4.125% with 1 point.
Also if you're not getting cashout you might be eligible for the programs that came out in April assuming your loan is held by Fannie or Freddie (they currently hold approx 50% of mortgages in the US)
The reason i asked is that there are additional loan level price adjustments for cashout refinances.
If you're not getting cashout than you should do better than 4.125% with 1 point.
Also if you're not getting cashout you might be eligible for the programs that came out in April assuming your loan is held by Fannie or Freddie (they currently hold approx 50% of mortgages in the US)
- tiger3599
- Contributions:50
cashout or rate and term? its 5/1 arm
- Key Lock Lending
- Contributions:100
Is this a cashout or rate and term transaction? Rates will take direction from stocks and other economic news this week. The treasury auctions over the last 2 weeks have gone well. Interest rates may very well get better; particularly if the stock market continues to toil.
Before jumping on the float boat be cognizant of what the deal is saving you now based on what is currently being proposed and weigh your options accordingly.
Often times on rate and term refinance transactions the savings isn't necessarily huge on a monthly basis and an increase of 1/4 to rate may make a deal seem less worthwhile. As long as your loan officer follows the market with diligence you can mitigate some of the risks associated with floating.
Bonds are technically "overbought" and have made some important advancements above what was technical layers of support at the 50, 100 & 200 day moving averages. If MBS can hold these levels than what was considered strong overhead resistance could form a very strong floor of support making further advancements possible.
Good luck with your transaction.
Before jumping on the float boat be cognizant of what the deal is saving you now based on what is currently being proposed and weigh your options accordingly.
Often times on rate and term refinance transactions the savings isn't necessarily huge on a monthly basis and an increase of 1/4 to rate may make a deal seem less worthwhile. As long as your loan officer follows the market with diligence you can mitigate some of the risks associated with floating.
Bonds are technically "overbought" and have made some important advancements above what was technical layers of support at the 50, 100 & 200 day moving averages. If MBS can hold these levels than what was considered strong overhead resistance could form a very strong floor of support making further advancements possible.
Good luck with your transaction.
- Sherri Sherpy, "MN Mortgage Mom"
- Contributions:476
It depends. What is your loan-to-value? What are your credit scores? All this is taken into consideration when calculating a rate. Give us a little more information and perhaps we can give you more direction.
Mortgage Rates tomorrow
Do you think that was before she received reprices to the lower based on today's action? Think rates drop more tomorrow and into Friday?
How much will that point cost? I haven't talked to her yet.
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